Bitcoin and Ethereum traded higher on Tuesday following the ban by China on initial coin offerings.
Bitcoin, the biggest cryptocurrency gained $53.60 at $4,253.60, while Ethereum, Bitcoin’s rival rallied $7.75 or 2.6 percent to $404.48.
Surge in Cryptocurrencies in China
The surge in cryptocurrencies in China by digital currency entrepreneurs has allowed them to sell digital tokens with no regulatory oversight. In the future ICOs will be punished and ones that have already been completed will be penalized following an investigation by the People’s Bank of China into the ICOs.
They have banned digital token financing and trading platforms from doing conversions of coins with fiat currencies. Fund raising that have already been completed by ICOs have been told to return funds.
Further Tightening of Regulations Expected
According to a Chinese financial news outlet, Yicai,, the announcement by the People’s Bank of China is just the beginning and further tightening of regulations is expected for cryptocurrencies.
Following the announcement of the ban, there was a sharp sell-off in cryptocurrencies, but a day later cryptocurrencies traded higher, with Litecoin, Ripple and Dash also trading higher.
Publicly traded cryptocurrencies total value was at approximately $150 billion on Tuesday, a drop of 16 percent from Saturdays high of nearly $180 billion.
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